At Western Computer, we’ve seen firsthand how poor inventory visibility can create costly problems for businesses. One example that stands out is a $60 million cosmetics CPG company struggling to keep up with fast-changing demand and growing inventory costs. Their disconnected systems left them overstocking slow-moving items while failing to keep popular products available for customers. The result? Missed sales opportunities, wasted capital, and growing frustration. But with the right tools and strategy, they turned it all around.
Here’s what we did and the lessons you can take away to improve your own inventory management.
Watch the One Fail One Fix Interview with Cady Jackson
Hear directly from Cady Jackson, Cloud Transformation Executive at Western Computer, as she explains how we helped this company turn their inventory fail into a major win with Microsoft Dynamics 365.
The Fail: Disconnected Systems Lead to Overstock and Lost Revenue
For this company, the problem started with a fragmented approach to inventory. They were juggling multiple systems: an outdated ERP, a standalone shipping tool, and separate trackers to monitor inventory levels. None of these systems were integrated, leaving them without real-time insights into their stock.
This lack of visibility caused a domino effect:
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Overstocking items that weren’t selling in certain regions
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Running out of high-demand products, leaving customers empty-handed
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Expensive carry costs from storing excess inventory
For a company operating in the competitive world of consumer packaged goods, these issues were costing them hundreds of thousands of dollars annually. They needed a unified system to help them track, predict, and optimize inventory levels.
The Fix: A Unified ERP with Microsoft Dynamics 365
We recommended Microsoft Dynamics 365 because it brings all aspects of inventory management under one roof. With Dynamics 365, this cosmetics manufacturer could integrate their purchasing, order fulfillment, inventory tracking, and financial data into one streamlined system.
Here’s how the fix worked:
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Centralized Inventory Management:
By connecting all data sources, including their own warehouse and third-party logistics (3PL) providers, Dynamics 365 gave them a real-time view of inventory across all locations.
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Improved Forecasting:
With access to performance data, they could track which products were selling and where, allowing for more accurate demand planning.
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Data-Driven Decisions:
The ability to slice and analyze data helped them spot inefficiencies, such as overstocked items in one region that could be reallocated to another where demand was higher.
One example? They discovered that a particular product wasn’t performing well in the Northeast but had higher demand in other areas. By shifting inventory, they reduced potential losses and optimized stock levels, saving $120K a year in the process.
The Benefits: Cost Savings, Better Availability, and Happier Customers
Implementing Microsoft Dynamics 365 brought major improvements, including:
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$120K in Annual Savings: Reduced overstocking and reallocated inventory to high-demand areas
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Lower Carry Costs: Fewer slow-moving products sitting on shelves, tying up working capital
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Real-Time Visibility: Up-to-date inventory tracking across all warehouses, leading to better decision-making
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Improved Customer Satisfaction: Popular products were consistently in stock, reducing missed sales opportunities
Lessons Learned
This success story highlights a few key takeaways for any business struggling with inventory challenges.
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Don’t Rely on Disconnected Systems
Without real-time visibility, it’s impossible to make informed decisions about inventory. A unified ERP like Microsoft Dynamics 365 ensures that you have the data you need when you need it.
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Invest in Accurate Forecasting
Historical sales data and performance insights are invaluable for predicting future demand and avoiding overstock or shortages.
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Regularly Review and Adjust Inventory Strategies
What works today may not work tomorrow. Having access to real-time data allows you to quickly adapt to changes in demand.
Is It Time to Rethink Your Inventory Approach?
If you’re struggling to balance stock levels, avoid overages, or meet customer demand, it might be time to take a closer look at your systems and processes. The right technology can transform your operations, as this cosmetics company discovered.
At Western Computer, we’re here to help. Whether you’re exploring Microsoft Dynamics 365 or need guidance on inventory optimization, let’s talk about how you can improve efficiency and cut costs.
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